GENERAL MCQs

1.Tax elasticity  considered:
1)Only discretionary changes
2)Only automatic changes
3)Both ✔
4) None

2.Arrange the proponents of the marginal productivity theory of factor reward in chronological order :
1. J.B. Clark
2. Marshall
3. Walras
4. Jevons
Select the correct code for correct answer :
Codes :
(A) 1, 4, 2, 3
(B) 4, 3, 1, 2
(C) 1, 3, 4, 2✔
(D) 2, 1, 4, 3

3.What is general stage of Classical view about Effective demand?
1.Perfact Employment ✔
2.Imperfact Employment
3.Both
4.None

4.What is general stage of Keyns view about Effective demand?
1.Perfact Employment
2.Imperfact Employment ✔
3.Both
4.None

5.What type of aggregate supply curve  shape is made in special stage of Keyns view about Effective demand?
1.Horizental
2.vertical✔
3. 1 Nor B
4.None

6.If the capital-output ratio is 4:1 and the annual growth rate of population is 2.5%, what will be required rate of investment in the economy in order to achieve 3% growth per annum in per capita income?
A.30%
B.20%
C.15%
D.None✔

7.If the capital-output ratio is 4:1 and the annual decreasing  rate of population is 2%, what will be required rate of investment in the economy in order to achieve 9% growth per annum in per capita income?
A.30%
B.20%
C.15%
D.None✔

8.In Which period  is more focus to make fully employment ?   
1.Shorterm
2.Longterm✔               
3. Medium term             
4.All

9.For the production Function Q=A.L^a.K^b the marginal rate of substitution of capital for Labour is given by :               
1.a/L*L/b                   
2.a/b*K/L✔                   
3.K/a*B/L                   
4.K/B*L/b

10.The point where product curve stops increasing at an increasing rate and starts increasing at diminishing rate is is called :
1.Point of saturation
2.point of inflaxion point✔
3.point of satiety
4.None

11.The point where product curve  increasing at an decreasing rate is called :
1.Point of saturation
2.point of inflaxion point
3.point of satiety✔
4.None

12.The commodities whose attributes can be evaluated by inspection and comparison is _____.
1. Convenience goods
2. Credence goods
3. Search goods✔
4. Public goods

13.Profits originate in _____.
1. High price
2. Uncertainty✔
3. Exploitation
4. Estimation

14.An example of uninsurable risk is______.
1. Fire
2.Theft
3. Fashion✔
4. Flood

15.A point of ‘Kink’ in the kinked demand curve indicates
I. Price rigidity
II. Quantity rigidity
III. Price flexibility
IV. Quantity flexibility
Codes :
(A) I and II are correct.✔
(B) II and III are correct.
(C) III and IV are correct.
(D) I and IV are correct.

16.Comparative cost advantage in Ricardo’s international trade theory arises due to
(A) Labour cost differences✔
(B) Differences in factor endowment
(C) Factor abundance defined in terms of factor prices
(D) All of the above

17.In the long run, the autonomous consumption will
(A) Be infinity
(B) Remains unchanged
(C) Decline but will remain positive✔
(D) Be zero

18.Identify the correct statement about the relationship between total fertility rate and gross reproduction rate.
(1) TFR < GRR
(2) TFR = GRR
(3) TFR > GRR✔
(4) All of the above

19. Under Cournot Model of Duopoly, each duopolist will produce
(A) half the output
(B) one-fourth of the output
(C) one-sixth of the output
(D) one-third of the total output

19.Which of the following is not specifi-cally mentioned as a determinant of the demand for money ?
(A) Wealth✔
(B) Nominal yield on alternative assets
(C) Inflation rate
(D) Real rate of interest

20. The 'break-even point' is where
A)marginal revenue equals marginal cost
B)average revenue equals average cost
C)total revenue equals total cost✔
D)None of these

21.Income tax is generally based on the principle of:
(1) Benefit received principle
(2) Ability to pay principle
(3) Willingness to pay principle
(4) None of these

22.For a viable input-output system which conditions are postulated?
(A) Hawkins-Simon conditions✔
(B) Kuhn-Tucker conditions
(C) Bhagwati-Eckaus conditions
(D) Von Neumann conditions

23.Which of the following are true of disguised unemployment?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
Codes:
(A) II and IV
(B) III and IV
(C) I, II and III
(D) I, II, III and IV

24.If the cost of transporting a goods between two nations exceeds the pretrade difference for the goods between two nations, then trade in that goods is:
(A) possible
(B) impossible✔
(C) reversal
(D) cannot say

25.Speculative demand for money is zero when market rate of interest is
(A) more than the ‘critical rate’.✔
(B) More than the market rate of interest but less than the critical rate (i.e. capital gains occur).
(C) less than the market rate of interest.
(D) Lowest (i.e. in liquidity trap).

26.Assertion (A): The rate of fall of MR Curve is more than twice the rate of fall of AR.
Reason (R): The MR & AR Curves are linear and negatively sloped.

Codes:

(A) Both (A) and (R) are true and (R) is correct explanation of (A).✔
(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

27. When supply curve is a vertical straight-line, it indicates:
A. unitary elastic supply
B. perfectly elastic supply
C. perfectly inelastic supply✔
D. relatively elastic supply

28.If elasticity of supply is equal to unity, what will be the percentage increase in supply as a result of 15 percent rise in price of a commodity?
A. 8%
B. 12%
C.15%✔
D.None

29.what is Standard deviation of 1st 50 natural number?
1.9.43
2.14.43✔
3.17.43
4.31.43

30.Given the 0,1,3,5,7,9,12,17,19  observations than Geometric mean :
1.0✔
2.12.4
3.16.5
4.22.8




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